Loan application form on a table in a dimly lit archive room
The Supreme Court of India has highlighted a significant disparity in banking practices, noting that financial institutions often exhibit a casual approach when sanctioning substantial loans to large corporations. In contrast, the same banks are reportedly imposing stringent and difficult conditions on ordinary citizens seeking smaller personal loans.
This observation, made by the apex court, points to a systemic issue where access to credit appears to be disproportionately easier for established businesses with significant borrowing needs, while individuals with modest financial requirements face considerable hurdles.
The court has suggested that the government consider formulating policies aimed at facilitating easier access to loans for the less privileged sections of society. This call for policy intervention underscores the judiciary’s concern over financial inclusivity and equitable access to credit.
The State Bank of India was specifically mentioned in the context of this trend, though the court’s remarks appear to address a broader banking sector issue. The disparity raises questions about risk assessment, lending priorities, and the overall fairness of the credit distribution system in the country.
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